R&D and Innovation in regional SMEs : A response to globalisation?

The globalisation of markets for companies in the small and medium sized enterprise sector (sme) sector is placing increasing demands on sme manufacturing companies. Companies often respond with programs that seek to attain quantum leap improvements. Some of these approaches focus on six sigma methods, others through a focus on research and development and innovation in processes and products. However the approach based on planning R&D and innovation in sme sector companies has often been neglected. This paper reports on a project involving 20 SME sector companies in Northern Metropolitan Melbourne. The research indicated that there was no shortage of ideas for innovation, research and development did not feature in any business plans that the companies had and there had been a very ad hoc approach to research and development and innovation activity. Fifteen of the twenty companies proceeded to develop R&D and Innovation Plans to assist their businesses to retain and improve their competitive position. The innovation plans involved innovation in both products and processes